What is Meant By Recognition?

✓ Recognition is a process whereby management shows acknowledgement of an employee’s outstanding performance.

✓ Recognition is a form of employee positive motivation. Recognition of employees is highly essential as people find themselves in a accepted and winning role.

✓ To sustain employee’s interest and to propel them towards continuous improvement, it is essential to recognise the people. This acknowledgement may be of financial, psychological or both in nature.

✓ Reward is a tangible one, such as increased salaries, commissions, cash bonus, gain sharing, etc., to promote desirable behaviour.

Why Should One Recognize the Employees?

The employees effort towards the improvement should be recognised for many reasons. Recognition is essential to:

• improve employees morale.
• show the company’s appreciation for better performance.
• create satisfied workplace.
• create highly motivated workplace.
• reinforce behavioural patterns.
• stimulate creative efforts.

Types of Rewards

Broadly, one can classify the rewarding systems into two groups. They are:

Richard S. Allen and Ralph H. Kilmann have tabulated the different intrinsic and extrinsic rewards in Table 1.

Table 1. Intrinsic Vs. Extrinsic rewards